For those of you who have purchased bank owned properties, any pearls of wisdom?

I used to love buying bank owned properties. The bank isn't in the business of owning the property, they want the loan.

Used to get some great deals. Seems that now they don't want to play. Shame really as some fine houses just sit and become vandalized because the bank wants an extra 10k.

Was bidding on one semi-local on Auction com. I drive by the house a lot. Not a great neighborhood. House is meh. It has been on the auction block six times so far. I keep offering below the minimum. They dropped the min once but not enough for me.

Tax foreclosures have always been more successful for me than bank foreclosures because there's so much disconnect from the banks, vs the indifference of the govt.

The times that I've tried to buy bank foreclosures, if it's been a big, national bank, they try to sell it at big, urban prices--- even in the middle of nowhere. It takes at least two or three years of nothing happening before they're willing to budge.

If it's been a small, local bank, even if it's just ten minutes down the road--- they have no clue that they own it, and will argue with you, even when you tell them their sign with their contact information is posted to the door.

So-- if you're used to buying near-retail, and in an urban area, it might be good for volume sales. But if you're used to buying wholesale fixer-uppers in more rural areas, it's probably not the best pond in which to fish.

I've bought several REOs over the years.

Like others have said, expect it to have been abandoned for some time before they finally figure out how much it's really worth.

If you plan to totally rehab it anyway, like I do, that's OK - as long a you get the price that allows the cost for all the work.

Not so many good deals as there used to be. They now will often put some lipstick on it & try to get full retail at first. (Banks thinking they are flippers)

I have experienced long delays waiting for all the different departments to sign off on the deal, then want me to submit more info "within 48 hours".

Other times it goes pretty quickly. You have to be flexible.

Bought quite a few starting in 2010- last purchase 2015.

Like others have said .... stick to your number. Had a HUD REO get bid up by youthful idiots only to have it come back to me (as a backup bidder) when they can't close.

I can't speak to the Indiana market place, but they seem to be an endangered species around here. When they do make it - they are scooped up in hours.